Cutting the Cable: Pay TV Subscribers Turn to Internet

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Cutting the Cable: Pay TV Subscribers Turn to Internet

by Mark Friedman on Monday, Jul. 16, 2012 12:00 am

Between 2008 and 2011, an estimated 2.65 million people, or 2.6 percent of U.S. pay TV subscribers, cut their TV subscriptions to rely solely on online content or watch broadcast television with the use of an antenna. (Photo by Shutterstock)

Still, Neel said he might return to cable because the Conway Corp.'s cable isn't that expensive. "It's possible," he said.

New Normal
Sappington, the director of research for Parks Associates, said the younger generation is comfortable watching shows online, which is becoming "the new normal."

"It's a world that pay TV providers have got to figure out how they're going to make a living in," he said.

Eiley, the president of Convergence, said it might take a generation before the majority of people watch shows online. "It's pretty obvious that there's a bit of a social change going on," Eiley said.

Now when young adults leave their parents' homes, they might not order a pay TV subscription from a cable or satellite provider for their apartment or house. "With the availability of Hulu, why do you need to sign up?" he said.